And the potential outcomes for you are:

If a customer paid for an item but didn’t receive it or they received an item which is significantly different from the original description, they may open a dispute in the Resolution Centre. Most of the time, these issues are the result of a simple misunderstanding or human error.

When the dispute can’t be resolved, either party can escalate it to a claim within 20 days. At this point, PayPal becomes directly involved and will make a decision using the information that’s provided.

Buyers may ask their credit card issuer to reverse the charge (called a chargeback). At this stage, the buyer asks their bank for a refund and does not involve the seller.

Our tips for preventing disputes and chargebacks.

Provide contact information

Buyers may not resort to a dispute or chargeback if they can talk to you about the issue. Provide an email address or phone number, or even call buyers in advance when you're selling higher-priced items.

Be responsive

No one likes to wait. Respond quickly and professionally to all reasonable buyer inquiries.

Suggest Dispute Resolution

If a customer tells you that they’re going to file a chargeback with their credit card company, ask them to open a dispute in the PayPal Resolution Center instead. This will give you and your buyer the chance to work things out.

Provide a clear return policy

Make sure your return and refund policies are easy to find and understand.

Avoid disputes and minimize losses with these tips:

Item not received

Provide realistic delivery dates

Realistic dates can help avoid customers prematurely filing a chargeback or dispute.

Ship with online tracking

Order shipping insurance

Be aware of insurance exceptions

Delay shipping high-risk orders

Use your own shipping service

Use care when choosing or acting as a drop shipper

Issue returns quickly and let customers know when you are out of stock/inventory

Significantly not as described

Unauthorized transactions

Download our guide

Take a look at our other guides to help you manage your business.

Avoiding fraudulent orders

Resolving disputes, claims and chargebacks

Our information does not constitute legal, financial or business advice. We are not responsible for your decision on disputes and chargebacks. Always do your own research and seek professional advice if needed.

Consumer advisory - PayPal Pte. Ltd., the holder of PayPal's stored value facility, does not require the approval of the Monetary Authority of Singapore. Users are advised to read the terms and conditions carefully.